Harland & Wolff, the iconic British shipbuilding company known for constructing the RMS Titanic, declared bankruptcy on September 16, 2024.
This decision follows the company’s inability to secure a crucial £200 million ($264 million) loan from the UK government.
The shipbuilder, which has been operating for 163 years, cited a lack of funds to continue its day-to-day operations as the reason for entering administration. Administration will allow the company to restructure rather than face immediate liquidation.
Despite this financial collapse, Harland & Wolff’s core operations, such as building three Royal Navy warships, will continue. However, job cuts have already begun in non-core areas.
The government’s refusal to provide financial support due to concerns over the risks to taxpayers has added to the shipbuilder’s challenges.
This is not Harland & Wolff’s first financial crisis; in 2019, it also faced significant financial difficulties but managed to survive after being acquired by a private company.
The current situation has sparked criticism from labor unions, who argue that the government should do more to protect the UK’s shipbuilding industry
